California is set to raise its minimum wage for fast-food workers to $20 an hour, prompting concerns from franchise owners about the dramatic impact on their businesses and the potential need to raise prices. The law, supported by the trade association representing fast-food franchise owners, aims to provide financial security to workers in a historically low-paying profession. However, franchise owners worry about the unprecedented nature of the change and its potential repercussions on their businesses in California's slowing economy.
The owners of 14 Subway franchise locations near San Francisco have been ordered by a federal court to pay nearly $1 million in damages and back pay to their employees. The court also mandated that the owners sell or close their businesses, with the proceeds going to the Department of Labor. The owners were found guilty of various labor violations, including employing minors in hazardous conditions, violating work hour regulations, issuing bad checks, and unlawfully keeping customer tips. The owners denied allegations of threatening or coercing employees but admitted to some labor standard violations. Their lawyer stated that the owners are unlikely to be able to pay the agreed sum.
McDonald's USA has announced that it will phase out self-serve beverage stations in its dining rooms across the U.S. by 2032. The change aims to create a consistent experience for customers regardless of the ordering method, such as McDelivery, app, kiosk, drive-thru, or in-restaurant. Some franchise owners have already started transitioning to staff-poured sodas, citing reasons such as theft prevention, food safety, and a focus on creating a more relaxed dine-in experience. While some customers appreciate the hygiene improvement, others express concerns about personal preferences and the convenience of self-service.
